Published: Monday, March 25, 2013 at 10:24 a.m.

Last Modified: Monday, March 25, 2013 at 10:24 a.m.

Gov. Pat McCrory's proposed two-year budget would slash $10 million from a state-created nonprofit that is nurturing a budding marine biotechnology industry in Southeastern North Carolina.

Facts

By the numbers Among spending cuts proposed by Gov. Pat McCrory's budget plan:Cut the Clean Water Management Trust Fund to $6.75 million from $10.75 million per year, a 37 percent cut. Does not specify funding for the second year. Reduce the Parks and Recreation Trust Fund to $15.5 million, down from $27.5 million, a 44 percent cut. Reduce the Natural Heritage Trust Fund to $4.23 million from $9.9 million, a 58 percent cut Cut funding for the Grassroots Science Museums fund by 25 percent in the upcoming fiscal year's budget, which begins July 1, and by 27 percent the following year Cut $10 million from the N.C. Biotechnology Center, which has one of six offices in Wilmington Cut $250,000 from the N.C. Minority Support Center and reduce funding for the N.C. Indian Economic Development Initiatives Inc., by $86,004 Cut the N.C. Rural Economic Development Center by $10 million Reduce the Biofuels Center of North Carolina's budget by $1 million Source: Governor's recommended budget and various organizations

But the governor doesn't see it as the state's mission to balance the checkbooks of nonprofits and other third-party organizations. Funds for the center are among the millions he would siphon from organizations run by independent boards – most of them created by the state.

Instead, he wants to shift those resources into the general fund, which pays for big-ticket items such as health care for the poor and public education.

But McCrory's budgeting philosophy on nonprofits also would reach deep into the hearts – and wallets – of some beloved Wilmington attractions.

For instance, on the chopping block is state funding for local museums, including the Cape Fear Museum and Children's Museum of Wilmington. Under McCrory's budget, released last week, funds for land, water and park conservation and preservation also would be reduced.

As a first step, Pope said, the governor would "encourage them to seek more private support." Still, McCrory does not wipe all of these special funds clean.

Rather, Pope, a former state legislator who's earned stripes as a stalwart of fiscal conservatism, is touting something called "zero-based budgeting" that requires expenses be justified year over year as opposed to building a fiscal plan off the previous year's numbers.

Sharp criticism

The governor's proposal doesn't sit well with these targeted organizations, many of whom fear the uncertainty of this philosophy. Norris Tolson, presidnet and CEO of the biotechnology center, said in a statement that the governor's budget would "cause us to default on our commitments to startup companies, research and development grants, economic development opportunities and education projects all across North Carolina."

One of the center's six offices is in Wilmington.

The state spun off the entity, originally housed in the Department of Commerce, into a nonprofit in 1984, but has always been its primary funder. Among the center's myriad functions, it helps shepherd early-stage research developments to the marketplace. It credits itself with recruitment of 25 projects in the last five years representing more than 1,750 direct jobs and $2 billion in economic output for North Carolina.

Rick Lawson, executive director of the children's museum, is also concerned about McCrory's stance on state funding for nonprofits.

"I'm a little shocked at how deep the cut is because we are where families go when things get tough; they go to museums, parks and aquariums," Lawson said.

McCrory's budget would cut funding for the Grassroots Science Museums fund, which supports local museums, by 25 percent in the upcoming fiscal year's budget, which begins July 1, and by 27 percent the following year, said Steve Saucier, executive director of Grassroots Science Museums Collaborative.

Water projects

Conservationists also are up in arms about McCrory's cutback proposals, including to a fund that has doled out millions of dollars locally for water restoration and preservation projects. The Clean Water Management Trust Fund has helped clean rivers that were previously unsafe for swimming, restored shellfish beds and fisheries, reverted thousands of farmland acres back to wetlands and funded stormwater retrofits.

Among large projects, it helped pay – to the tune of $6 million – for New Hanover County's late 1990s acquisition of Airlie Gardens, a 67-acre public garden on Bradley Creek, an estuarine waterway with trees more than 450 years old.

"That type of project would have never happened without this fund," said Todd Miller, executive director of the N.C. Coastal Federation.

McCrory suggests the fund get $6.75 million in state dollars next fiscal year; but his budget shows a single ominous dash for the 2014-2015 budget year.

Pope said that doesn't represent a decision to kill the fund; rather, he said the governor plans to take a look at needs in that area when he revises the budget next year.

Regardless, the governor's proposal represents a significant reduction in resources compared to past budgets. The Clean Water Management Trust Fund was flush with more than $100 million at its peak in 2007. It had just over $10 million last year.

Camilla Herlevich, executive director of the N.C. Coastal Land Trust, said news of the proposed cuts came just days before her organization dedicated new signage for Bird Island Coastal Reserve in southern Brunswick County, a project paid for by the fund about a decade ago.

"It's a sad day. We appreciate that there is some money in there ... but the Clean Water Management Trust Fund has been the source of grants for some extraordinary projects since its creation in 1995."

Among them, she said, is the trust's "Encroachment Partnership" with the Marine Corps. The trust uses money from the fund to purchase land or development rights near military bases such as Cherry Point and Camp Lejeune to protect surrounding natural habitat and discourage incompatible development.

The federal military projects require a dollar for dollar state match.

McCrory's budget is far from a done deal. House and Senate leaders also are crafting budgets, and it's yet to be seen how the governor's recommendations will be incorporated.

<p>Gov. Pat McCrory's proposed two-year budget would slash $10 million from a state-created nonprofit that is nurturing a budding marine biotechnology industry in Southeastern North Carolina.</p><p>It's nothing personal against the N.C. Biotechnology Center, said McCrory's budget director, Art Pope.</p><p>But the governor doesn't see it as the state's mission to balance the checkbooks of nonprofits and other third-party organizations. Funds for the center are among the millions he would siphon from organizations run by independent boards – most of them created by the state. </p><p>Instead, he wants to shift those resources into the general fund, which pays for big-ticket items such as health care for the poor and public education.</p><p>But McCrory's budgeting philosophy on nonprofits also would reach deep into the hearts – and wallets – of some beloved Wilmington attractions. </p><p>For instance, on the chopping block is state funding for local museums, including the <a href="http://www.starnewsonline.com/section/TOPIC9959"><b>Cape Fear Museum</b></a> and <a href="http://www.starnewsonline.com/section/topic69"><b>Children's Museum of Wilmington</b></a>. Under McCrory's budget, released last week, funds for land, water and park conservation and preservation also would be reduced. </p><p>As a first step, Pope said, the governor would "encourage them to seek more private support." Still, McCrory does not wipe all of these special funds clean. </p><p>Rather, Pope, a former state legislator who's earned stripes as a stalwart of fiscal conservatism, is touting something called "zero-based budgeting" that requires expenses be justified year over year as opposed to building a fiscal plan off the previous year's numbers. </p><p><b>Sharp criticism </b></p><p>The governor's proposal doesn't sit well with these targeted organizations, many of whom fear the uncertainty of this philosophy. Norris Tolson, presidnet and CEO of the biotechnology center, said in a statement that the governor's budget would "cause us to default on our commitments to startup companies, research and development grants, economic development opportunities and education projects all across North Carolina." </p><p>One of the center's six offices is in Wilmington.</p><p>The state spun off the entity, originally housed in the Department of Commerce, into a nonprofit in 1984, but has always been its primary funder. Among the center's myriad functions, it helps shepherd early-stage research developments to the marketplace. It credits itself with recruitment of 25 projects in the last five years representing more than 1,750 direct jobs and $2 billion in economic output for North Carolina. </p><p>Rick Lawson, executive director of the children's museum, is also concerned about McCrory's stance on state funding for nonprofits. </p><p>"I'm a little shocked at how deep the cut is because we are where families go when things get tough; they go to museums, parks and aquariums," Lawson said. </p><p>McCrory's budget would cut funding for the Grassroots Science Museums fund, which supports local museums, by 25 percent in the upcoming fiscal year's budget, which begins July 1, and by 27 percent the following year, said Steve Saucier, executive director of Grassroots Science Museums Collaborative.</p><p><b>Water projects </b></p><p>Conservationists also are up in arms about McCrory's cutback proposals, including to a fund that has doled out millions of dollars locally for water restoration and preservation projects. The Clean Water Management Trust Fund has helped clean rivers that were previously unsafe for swimming, restored shellfish beds and fisheries, reverted thousands of farmland acres back to wetlands and funded stormwater retrofits. </p><p>Among large projects, it helped pay – to the tune of $6 million – for New Hanover County's late 1990s acquisition of <a href="http://www.starnewsonline.com/section/topic04"><b>Airlie Gardens</b></a>, a 67-acre public garden on Bradley Creek, an estuarine waterway with trees more than 450 years old. </p><p>"That type of project would have never happened without this fund," said Todd Miller, executive director of the N.C. Coastal Federation. </p><p>McCrory suggests the fund get $6.75 million in state dollars next fiscal year; but his budget shows a single ominous dash for the 2014-2015 budget year. </p><p>Pope said that doesn't represent a decision to kill the fund; rather, he said the governor plans to take a look at needs in that area when he revises the budget next year. </p><p>Regardless, the governor's proposal represents a significant reduction in resources compared to past budgets. The Clean Water Management Trust Fund was flush with more than $100 million at its peak in 2007. It had just over $10 million last year. </p><p>Camilla Herlevich, executive director of the N.C. Coastal Land Trust, said news of the proposed cuts came just days before her organization dedicated new signage for Bird Island Coastal Reserve in southern Brunswick County, a project paid for by the fund about a decade ago. </p><p>"It's a sad day. We appreciate that there is some money in there ... but the Clean Water Management Trust Fund has been the source of grants for some extraordinary projects since its creation in 1995."</p><p>Among them, she said, is the trust's "Encroachment Partnership" with the Marine Corps. The trust uses money from the fund to purchase land or development rights near military bases such as Cherry Point and Camp Lejeune to protect surrounding natural habitat and discourage incompatible development.</p><p>The federal military projects require a dollar for dollar state match. </p><p>McCrory's budget is far from a done deal. House and Senate leaders also are crafting budgets, and it's yet to be seen how the governor's recommendations will be incorporated. </p><p>Metro desk: 343-2389</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @StarNewsMolly</p>